Binance has become one of the first cryptocurrency exchanges to gain approval from the newly established Virtual Asset Regulatory Authority (VARA) in Dubai. The exchange has been granted a Virtual Asset License, and it will be operating as a regional business.
“Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security,” Binance CEO, Changpeng Zhao said.
Under the new license, Binance can offer limited exchange products and services to pre-qualified investors and professional financial service providers in Dubai. In addition, it will need to ensure rigorous regulatory oversight and mandatory FATF compliance controls.
The regulator will monitor the offerings before allowing their access to the retail market.
“High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry,” Zhao added.
Dubai: The Blockchain Hub of the Middle East
Dubai, one of the seven United Arab Emirates, enforced its initial regulations in the virtual asset space last week and also established a dedicated regulator, VARA. The city aims to become the digital asset hub in the region.
“Onboarding Binance within the VARA is reflective of their commitment to the Dubai agenda, to provide the global industry the certainty of governance, enabled by ‘shared industry responsibility’ and legislative security for society,” Helal Saeed Almarri, the Director-General of Dubai World Trade Centre Authority that houses VARA, said.
Meanwhile, Binance is extensively focusing on expanding its business in the Middle East. Its latest license came only days after it received approval from the Central Bank of Bahrain to operate as a crypto-asset service provider.
“The collaborative way in which Binance has been engaged to bring proven industry compliance leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry,” said Zhao.
